I flew Virgin at the start of the year for the first time to DXB ex LHR. It was awful. I was flying cattle class admittedly but the seats were some of the most uncomfortable I've had the privilege of sitting on. The food was absolutely disgusting and the crew really took very little interest in the passengers, prefering to gossip loudly about their fellow workers.
The final straw for me was when my wife was attempting to watch sunrise over the mountains of (what I presume was) Iran - a male steward leant across me without so much as an "excuse me" and slammed the window blind shut without saying a word to my wife and waltzed off back into the galley.
Unfortunately it would appear that Virgin are happy to sit on their laurels and rely on their "funky" image. It would appear that their staff are not motivated to provide a superior service and they expect the passengers to be so smitten by the shiny new IFE systems and the perks of flying Upper Class etc that nobody will complain...